Join 60,000+ competitive exam aspirants
or with email
Your Cart
SubtotalтВ╣0
TotalтВ╣0
Examoogle тАв User тАв info@examoogle.com тАв EE-2024-8821
Chapter 1 of 12 тАв Page 1 of 248ЁЯФТ Protected PDF тАв Watermarked
Join 60,000+ competitive exam aspirants
What is the primary reason for a government to implement a Goods and Services Tax (GST)?
To simplify the tax structure
To increase the complexity of the tax system
To eliminate all indirect taxes
To discourage all kinds of consumption
To simplify the tax structure
The Goods and Services Tax (GST) is a comprehensive indirect tax designed to replace multiple cascading taxes levied by central and state governments. By creating a unified market, it eliminates the cascading effect of taxes (tax-on-tax) and simplifies compliance through a single, pan-India tax regime.
The Goods and Services Tax (GST) is a comprehensive indirect tax designed to replace multiple cascading taxes levied by central and state governments. By creating a unified market, it eliminates the cascading effect of taxes (tax-on-tax) and simplifies compliance through a single, pan-India tax regime.
GST was introduced in India via the 101st Constitutional Amendment Act, 2016, which empowered both the Centre and the States to levy tax on the supply of goods and services. It falls under Article 246A of the Indian Constitution.
GST is a destination-based consumption tax applied to the supply of goods and services.
The GST Council is the governing body for GST in India, headed by the Union Finance Minister under Article 279A.
It replaced various indirect taxes including Excise Duty, Service Tax, VAT, and Luxury Tax.
GST is categorized into CGST, SGST, and IGST to maintain the federal structure of the country.
Option B is incorrect because GST reduces complexity by replacing a web of disparate state and central levies with a unified system.
Option C is incorrect because GST replaced most, but not all, indirect taxes (e.g., taxes on petroleum products and alcohol for human consumption remain outside GST).
Option D is incorrect as GST is intended to streamline the economy and boost compliance, not to discourage consumption.
A is correct тАФ GST was implemented primarily to consolidate multiple indirect taxes into a single structure, thereby reducing the cascading effect and easing tax compliance.
When studying GST, always correlate it with the Fiscal Federalism chapter in Polity, specifically the role of the Finance Commission and the GST Council in resolving center-state financial disputes.
Get instant step-by-step AI explanations, full shift Previous Year Papers (SSC GD, RRB, SSC JE), and regional rank analysis on the official Examoogle App.
Free Download тАв 100K+ Aspirants